Question

In the long run, a fully anticipated increase in the inflation rate will?A. increase real national output B. increase the nominal interest rate C. decrease real national output D. decrease the real interest rate E. shift the long-run Phillips curve to the right

Answer 1

B

Step-by-step explanation:

In the long run, the rate of inflation will be determined by two factors: the rate of money growth and the rate of economic growth. Economists generally agree that the rate of money growth is one determinant of an economy's inflation rate in the long run.